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Brockville councillors are contemplating a “hotel tax” of four per cent on local accommodations businesses in an effort to raise funds for tourism promotion.

But under the proposed measures, as much as half the money collected could go not to tourism but city hall’s coffers.

Council’s economic development and planning committee was scheduled to discuss a staff recommendation “that a hotel tax at a proposed rate of four per cent on all Brockville transient accommodations effective May 1, 2018 be approved.”

The recommendation further suggests that neighbouring Elizabethtown-Kitley Township “be encouraged to implement a similar transient accommodation tax.”

The planning committee was scheduled to meet at 4:15 p.m. Tuesday; if it backs the recommendation, the motion will still have to go to the full council for a final vote.

The renewed push comes after unsuccessful attempts to set up a local hotel tax, “bed tax” or destination marketing fee in the past. But this time, the city would have the backing of Queen’s Park.

Under the rules, at least 50 per cent of the funds collected under the tax is to be allocated to an “eligible tourism entity,” or a non-profit entity that promotes tourism.

The money is to be used “for the exclusive purpose of promoting tourism.”

The Brockville and District Chamber of Commerce does the city’s tourism promotion on a contract. The rules, White adds, would allow the city to cover its contract with the chamber, currently paid for by the general property tax levy, with the hotel tax revenue instead.

There would also be a considerable sum left behind.

White’s report estimates the city would collect approximately $380,983 a year from a four-per-cent hotel tax on 10 accommodation providers, a list that includes bed-and-breakfasts.

The chamber contract, which runs until the end of 2020, costs the city approximately $188,000 per year.

“If 50 per cent of the net hotel tax was higher than the contract amount, the city could choose to either supplement the tourism contract or redirect the funds to another eligible tourism entity,” White adds.

“The remaining 50 per cent of the funds, less any administration fees, can be allocated at the discretion of the municipality.”

White confirmed Monday that means the city could, theoretically, apply part of that hotel tax to non-tourism operations such as policing or road work.

“Currently, it is not earmarked for anything but would have to be a council decision,” said White.

The latter provision is significant because the prospect of a hotel tax came up as an option for consideration in last month’s debate about added funding for Brockville’s Aquatarium.

In recommending a rate of four per cent, city officials note that Ottawa, Toronto and Mississauga have each proposed a hotel tax at that rate.

In July of 2009, Brockville’s Comfort Inn implemented a tourism marketing fee on its own, an initiative it gave up the following July, White noted in her report. The one-year effort brought in $61,828, which went to such promotion activities as advertising in a visitor guide, a new website for Brockville Tourism to support the 2010 Canada 55+ Games and Fred Page Cup, and multimedia campaigns in Ottawa, Montreal and Upstate New York.

Ali Rehman, owner of Brockville’s Holiday Inn Express Hotel and Suites, said Monday there have been talks among Brockville hoteliers about a marketing fee but with no result.

“We have failed to put everybody on the same page in terms of the hotels,” said Rehman.

He added he would be willing to contribute to a tourism promotion fund – but not without a firm business plan that earns the hoteliers’ confidence.

“We all need to know where the money will be used,” said Rehman.

That is especially the case because a four-per-cent hotel tax would hit hotels just as labour costs are increasing with the provincially-set jump in the minimum wage, he added.

White confirmed, however, that the new hotel tax would be mandatory for all affected businesses, as it would be enacted by bylaw.

Councillor Mike Kalivas, the new planning committee chairman, said Monday he could understand how some hoteliers and other operators might resent being forced to collect a new tax for the city.

“It could create ill-will, but at the same time it certainly puts everybody on a level playing field,” said Kalivas.

As for the city spending part of the new hotel tax on regular municipal operations, that would be a matter for a separate discussion should council opt to go with the new program, he said.

Council could decide to spend the entire $381,000 on tourism-related operations, said Kalivas, adding that seems to be “the point of the initiative.”

The four per cent figure itself is up for debate, he added.

“Everything’s up for discussion and everything’s up for vote,” said Kalivas.